They say money doesn’t grow on trees.
In California? It might just grow in your backyard — if you build an Accessory Dwelling Unit (ADU).
An ADU — whether it’s a converted garage, a backyard cottage, or a basement apartment — transforms underutilized space into a functional, income-generating asset. And with California’s housing shortage and high rental demand, ADUs aren’t just convenient — they’re financially strategic.
State legislation has made ADUs easier than ever to build. Laws like AB 68, AB 881, and SB 13 have streamlined permitting, reduced or waived impact fees, and limited the ability of local agencies or HOAs to block development. Many cities now offer pre-approved plans and expedited review — turning what was once a bureaucratic maze into a manageable process.
But ease of permitting doesn’t eliminate the biggest hurdle: financing.
Traditional lenders often require strong credit, significant down payments, and lengthy approval timelines — none of which align with the fast-moving, opportunity-driven nature of ADU development. Delays can mean missed permits, contractor availability, or rising material costs.
That’s where Capital Direct Funding comes in.
We specialize in ADU construction financing tailored to California homeowners. Our loans are designed for speed and flexibility — because your backyard opportunity shouldn’t wait for a bank’s calendar.
- Approvals in as little as 48 hours
- Financing up to 90% of project cost
- Credit scores as low as 580 considered
- No prepayment penalties
- Guidance through zoning, permitting, and budgeting
We don’t require you to be a developer or have prior construction experience. We focus on the potential of your property — not perfection on paper. Whether you’re building for rental income, multigenerational living, or future equity, an ADU is one of the most efficient ways to unlock value from land you already own. Before you begin:
- Review local zoning and ADU ordinances — most California cities publish guidelines online.
- Get preliminary cost estimates — from design through construction.
- Secure financing early — know your budget before you sign with a contractor.
- Choose experienced ADU builders — avoid general contractors unfamiliar with ADU-specific codes.
And avoid lenders who promise “no-doc” approvals or encourage misrepresentation — compliance matters. California’s ADU-friendly laws still require proper classification and documentation.
At CDF, we’ve helped hundreds of homeowners across the state navigate ADU financing — from Los Angeles to Sacramento, San Diego to the Bay Area. We understand the regulations, the timelines, and the real costs involved.
Your backyard isn’t just space. It’s potential.
Potential for income.
Potential for equity.
Potential for freedom.
They say money doesn’t grow on trees.
In California, with the right plan and the right partner — it grows in backyards.